Dow Jones futures were little changed early Friday, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) held a “Cyber Rodeo” grand opening event Thursday night at its Austin plant.
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The stock market rally tested key support levels Thursday morning as Treasury yields continued to climb amid continued hawkish Federal Reserve statements. But the major indexes rebounded to close slightly higher.
Investors should be paying attention to sectors that are working but be cautious about new purchases overall. Exxon Mobil (XOM), Lockheed Martin (LMT), Horizon Therapeutics (HZNP), Dollar General (DG) and O’Reilly Auto (ORLY) are five stocks in leading sectors that are in or near buy points.
Tesla stock is on IBD Leaderboard. Tesla and HZNP stock are on the IBD 50. XOM stock is on the Big Cap 20, a list dominated by energy and commodity plays right now. ORLY stock was Thursday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures were just below fair value. S&P 500 futures and Nasdaq 100 futures edged lower.
The 10-year Treasury yield rose 1 basis point to 2.66%.
U.S. crude oil prices fell slightly.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally sold off in the morning but then rebounded for slim gains.
The Dow Jones Industrial Average rose 0.25% in Thursday’s stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite edged up less than 0.1%. The small-cap Russell 2000 fell 0.4%.
U.S. crude oil prices dipped 0.2% to $96.03 a barrel. Natural gas prices jumped to their highest close since December 2008.
The 10-year Treasury yield rose four basis points to 2.65%, a fresh three-year high and widening the yield curve slightly.
St. Louis Fed President James Bullard, one of the more hawkish policymakers, said the fed funds rate, currently at 0.25%-0.5%, should be at 3.5% to fight high inflation. The Federal Reserve is likely to raise rates by 50 basis points at each of the next three policy meetings, with balance sheet reductions kicking off after the early May event.
ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 0.9%. The iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.45%. The VanEck Vectors Semiconductor ETF (SMH) closed just above break-even.
SPDR S&P Metals & Mining ETF (XME) rallied 2.2% and the Global X U.S. Infrastructure Development ETF (PAVE) tilted higher. U.S. Global Jets ETF (JETS) descended 1.4%. SPDR S&P Homebuilders ETF (XHB) slipped 0.5%. The Energy Select SPDR ETF (XLE) rose 1.1%, with XOM stock a major component. The Financial Select SPDR ETF (XLF) dipped 0.1%. The Health Care Select Sector SPDR Fund (XLV) gained 1.9%
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 1.2% and ARK Genomics ETF (ARKG) sank 0.7%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs.
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Tesla Austin ‘Cyber Rodeo’
CEO Elon Musk Thursday night at a Tesla Austin plant event, dubbed the Cyber Rodeo. Tesla will officially begin Model Y deliveries from the plant on Friday. That follows initial deliveries from the Berlin-area plant last month. The two new plants will greatly expand Tesla’s capacity, but are expected to slowly ramp up production.
The Cybertruck made another cameo appearance. Tesla Austin will eventually make the Cybertruck and Semi, two vehicles that have been pushed back several times. Musk again said that Cybertruck production will hopefully start next year.
Musk made other comments about a future robotaxi service, as rivals launch self-driving services in San Francisco. But he didn’t offer many specifics about future products and services, other than a much-wider rollout of FSD…
Read More: Dow Jones Futures: Stock Market Rally Reverses Higher; Tesla Austin’s ‘Cyber